CICC: The percentage of securities held by public institutional investors in securities firms has reached a historical low.

According to the non-bank research report of China International Capital Corporation (CICC), in the first quarter of 2026, the overall A-share capital market sector was reduced by public funds. The sector's holdings dropped from 0.80% in the fourth quarter of 2025 to 0.38% in the first quarter of 2026, a decrease of 0.42 percentage points month-on-month. The sector was underweight by 2.71 percentage points relative to the total market capitalization of A-shares, with the underweight level remaining basically the same as the previous quarter. At the individual stock level, Huatai A and Zhongxin A were the most reduced in holdings, while Guangfa A, Dongfang A, Guotai Haitong A, and Xingye A were also significantly reduced. Meanwhile, CMB A, Cinda A, and Guoxin A saw slight increases in holdings. CICC non-bank analysts pointed out that institutional holdings are at their lowest level since the second quarter of 2024, enhancing the safety cushion for investment in the brokerage sector. They recommend focusing on brokerages with strong wealth management capabilities, differentiated advantages through the linkage of three investments, and high growth potential in international business. In addition, they suggest paying attention to internet brokerages and financial information data service providers that combine performance valuation elasticity and growth potential.